04.06.2010

Gehl pays down debt

Manitou has announced that its subsidiary Gehl has sold $36 million of existing finance contracts and receivables to a third party lender. The proceeds of the transaction have been used to repay Gehl’s existing $19.5 million securitisation programme in full and reduce the principal amount outstanding under the revolving tranche of its credit facility to $20 million.
Click here to see Gehl agrees credit amendment

Gehl reimbursed the term loan portion of its credit facility in full in March. Concurrently with this transaction, Gehl has amended its June 2009 credit facility, principally to have all past defaults waived by the lenders, while reducing the maximum available amount of the revolving tranche to $45 million.

The amended credit facility will remain available to Gehl through September 15, 2010 in order to provide the company with sufficient liquidity for the near-term, while it reorganises long-term funding for the company.

Gehl has reduced its total debt from $329 million in December 2008 to $113 million as of today.

Manitou chief executive Jean-Christophe Giroux, said: “We are very pleased with this important milestone. It recognizes Gehl’s constant focus on cash generation over the last 18 months, as well as a gradually improving business environment in the US. We are now actively working towards a new and improved financial structure that will support the development of Gehl and its success for the long-term”.